ABCounting Ltd

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Everything you need to know to build the business you want

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Research and Development Tax Credits

R&D Tax Credits have always been something overlooked by those in the B2B or are dismissed because companies believe they won’t have anything that qualifies for the credits. However… If you’ve done anything to overcome a problem and/or made something in the business cheaper/safer/more efficient by doing things differently then there’s a good chance you might be due either a healthy tax saving or even some cash back from the tax man. To try and demystify it all read below for a more detailed guide on R&D Tax Credits and how they can help you. 

Do I qualify?
To qualify for R&D Tax Credits you must be : 

  • A Limited company in the UK
  • Subject to Corporation Tax
  • Have a product/project that is qualifying
  • Have spent money on R&D activities

What are R&D Tax Credits? 

They are a tax reduction of up to 230%. Being the government’s way to encourage businesses and companies to be innovative, with billions claimed each year by those taking the initiative to apply as most businesses don’t as they wrongly believe they will not qualify. 

How to claim?
In order to claim for your tax credits you can follow the step by step guide below : 

  • Identify a project or product that is innovative
  • Check that it qualifies
  • Calculate the costs you can claim
  • Complete a technical report
  • Submit to HMRC

Once completed you can receive cash back or a deduction from your corporation tax bill. 

Where to start? 

You can spot possible R&D projects by asking yourself the following questions : 

  • Does it solve a problem? 
  • Have you done anything differently to make things more efficient, safer or cheaper? 
  • Has it sought to advance a process, product or service? 
  • Have you incurred actual costs on it? 

You can always make the above claim yourself by sending it in the HMRC however companies can and will often make mistakes if they doubt that they qualify or are unsure, That’s why we recommend getting in touch with ourselves so we can help you file that claim and get those credits successfully with our 100% success rate on R&D Tax Claims thus far.

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